Business loan ?

[SuperGlide]

Has anyone ever acquired a business loan?

What's all involved?

Are they hard to get?

Thanks

 

[Kristopher1129]

I looked pretty heavily into getting a business loan to acquire my business. It's definitely not a piece of cake. You have to put together a convincing financial strategy for your business.

You basically have to prove that you will be able to pay the loan back with your business. Unless you have some sort of collateral to back up the loan.

You'll need numbers, specifics, suspected profit, current customer base (if any at all), factual evidence that will convince them this will work for you. Otherwise, they simply won't lend the money. In todays economy...I'm guessing they aren't throwing these loans out like candy. But, I could be wrong.

I'm assuming you don't currently have a business, and are looking for a loan to start one. If you already have a successful business, and are looking for a loan...then that's a different story. With an already established business, convincing them is fairly easy.

 

[Flannigan]

I know it's not what you asked, but I'm going to throw my 5 cents in anyway. When I decided to get into detailing as a source of income I thought about getting a business loan. I started putting together all the information that was needed, and kept detailing at the same time with what I had. I quickly realized that I could fund my business with the money I was making instead of getting a business loan. Sure it wasn't as fast, but now, years later, I have ZERO debt associated with my business. That means if I have a bad month I don't have to worry about paying a loan back on top of worrying about how to pay my normal bills. If you can do it, I'm telling you thats the way to go. Start small and work your way up. You'll have to put every cent back into the business for a while, but i can tell you from experience it's awesome knowing that they money you work so hard for everyday is all yours.

 

[SuperGlide]

Thanks for the replies.

I've been mobile detailing since 1996.
The reason why I'm asking is to expand
My business.

I have quite an extensive customer base
And proof of being successful.

I never really looked into a loan like this
And thought it would be a good idea to
do some research before talking with the
bank.

All comments are helpful

Thanks again

 

[SuperGlide]

Bump....

 

[60IN3]

Like said before you need a well thought-out business plan. Consider hiring someone to write it that can use the "language". Banks are not making it easy (IMO should have been doing it all along) Another easier option is a SBA Line of credit. Works like a normal LOC, only pay on what you use, downside is most a variable rates, although the rates don't look like they will be increasing any time soon. If you have collateral they WILL want you to use it. Also most banks if approved will give +/- 80% of what your asking for so either ask for more or make do with less. I worked as a small business lender for a few years before I started with cars. Another option ,which I used is get a Business credit card, it will give you a grace period to have work before you pay for the materials.

I agree 100% with Flannigan, owing no one money is the best feeling. Its the route I went with as well, bought my initial supplies then let my work pay for the rest, Still putting most of the money back into the business. Don't lose sleep if you have a slow week which means less stress in-turn you will still enjoy detailing! A rule I was taught while working, If you need to expand and dont have 50% of the money you need then you really need to re-consider the expansion.

 

[Flash Gordon]

If you need a 25k loan, you will need 25k of collateral. This is how a loan works these days

Good luck

Flash

PS. Never put your home down as collateral